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Informist, Monday, Aug. 25, 2025

--Fitch ups JSW Infra long-term foreign currency issuer default rtg to 'BBB-' 

MUMBAI – Fitch Ratings Monday upgraded JSW Infrastructure Ltd.'s long-term foreign-currency issuer default rating and the rating on the company's $400 million senior notes due 2029 to 'BBB-' from 'BB+', with a stable outlook. 

The rating upgrade is on the expectation that the company's leverage, measured by gross debt/earnings before interest, taxes, depreciation, and amortisation, will remain below 3.5 times over the medium term, despite the company's significant capital expenditure plan, with the company maintaining its third-party cargo mix at around 40% in the long term, Fitch Ratings said. The company's leverage was 2.1 times in 2024-25 (Apr-Mar). 

The port operator's strong financial profile is underpinned by solid asset quality, resilient volume and flexibility in phasing its INR 300 billion capital expenditure programme to preserve financial strength, the rating agency said. Fitch Ratings expects the company to fund capital expenditure through operating cash flow, equity issuance and borrowings. The company's third-party cargo mix is expected to be supported by new concessions and greenfield port handling third-party cargo from FY28, although expanding captive port capacity in the next two years may temporarily increase the share of JSW group cargo.

Further, the rating agency expects the company's newly acquired Navkar Corp. Ltd. to provide a modest boost to its third-party cash flow over the medium term. This third-party cash flow, including contributions from ports under construction, is expected to be sufficient to service and repay debt over the weighted-average life of the concessions. The rating action, however, is exclusive of the potential cash inflow from a planned follow-on equity issuance, as the fundraising exercise is still at an early planning stage, Fitch Ratings said. 

The rating agency expects volume growth for both JSW group and third-party cargo to remain with the country's strong economic growth and the government's infrastructure push. 

JSW Infrastructure's ratings could be downgraded if its leverage under the rating case remains above 3.5 times, with the third-party contribution remaining below 40% of total cargo and revenue, Fitch Ratings said. Additionally, lowering India's country ceiling to 'BB+' would also lead to a rating downgrade for the company. 

A further positive rating action is unlikely in the near to medium term, as the rating is constrained by India's country ceiling and the company's large investment plan, Fitch Ratings said. However, an upward revision in the country ceiling to 'BBB' and gross leverage under rating case sustained below 2.5 times, with the third-party contribution at least 50% of total cargo and revenue on a sustained basis, would lead to a positive rating action. 

Fitch Ratings Monday affirmed India's long-term foreign-currency issuer rating at 'BBB-' with a stable outlook.

JSW Infra reported a consolidated net profit of INR 3.85 billion for the June quarter on revenues of INR 12.24 billion. On Monday, the company's shares closed at INR 303.25 on the National Stock Exchange, down 0.6%.  End 

Reported by Arya S. Biju

Edited by Saji George Titus

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